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Employment Termination in Philippines

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Termination process

Employees may be terminated for justified causes or for authorised causes. According to the law, just causes include serious misconduct, willful disobedience, gross and habitual neglect of duties, fraud, willful breach of trust, commission of a crime, and other analogous causes. Employers must give employees written notice of termination. Employees must then have the opportunity to appeal the decision at a hearing. The employer will then render a final decision on termination.

Workers who are pregnant or on maternity leave cannot be terminated.

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Notice period

Employers must give one month notice for most authorised reasons.

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Severance pay

Severance pay is not required for termination for a just cause. For authorised causes, severance pay of one months pay or one half month’s pay for every year of service, whichever is greater.

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Probation periods

Probationary periods of up to six months are allowed in the Philippines.

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